THE IMPACT OF FINANCIAL INSTRUMENT ASSETS AND ITS DISCLOSURE COMPLIANCE ON THE FIRM VALUE WITH THE AUDITOR REPUTATION AS THE MODERATING VARIABLE

Abstract

This research examines the impact of financial instrument asset and its disclosure compliance on the firm value with the auditor reputation as the moderating variable. The firm value is measured by the stock returns, financial instrument asset is measured by the total amount of the assets, and auditor reputation is measured with the auditor rank based on its revenue. Regression analysis is employed to test the variables’ relationship. This research finds that financial instrument assets and its disclosure compliance have positive and significant impact on the firm value. However, auditor reputation does not prove that this is the moderating variable. Moreover, the auditor reputation does not strengthen the impact of financial instrument asset and its disclosure compliance on the firm value.

Keywords: financial instrument asset, firm value, disclosure compliance, auditor reputation.